SEBI to accept UIDAI electronic KYC as address, identity proof

Market regulator SEBI Tuesday said it will accept e-KYC (Know Your Client) service of UIDAI as a valid proof of identity and address for opening accounts with brokerage firms, mutual funds, portfolio managers and other capital market entities.

Mumbai: Market regulator SEBI Tuesday said it will accept e-KYC (Know Your Client) service of UIDAI as a valid proof of identity and address for opening accounts with brokerage firms, mutual funds, portfolio managers and other capital market entities.

'Aadhaar', is a 12-digit individual identification number issued by UIDAI (Unique Identification Authority of India).

"In consultation with UIDAI and the market participants, it has now been decided to accept e-KYC service launched by UIDAI also, as a valid process for KYC verification," the Securities and Exchange Board of India (SEBI) said.

"The information containing relevant client details and photograph made available from UIDAI as a result of e-KYC process shall be treated as sufficient proof of Identity and address of the client," it added.

However, the client would have to authorise the intermediary to access his data through UIDAI system, SEBI said in a circular issued today to mutual funds, brokers, depository participants, portfolio managers, alternative investment funds and collective investment schemes, among other market entities.

In August 2012, SEBI had allowed investors to use 'Aadhaar' cards as a valid address proof for their accounts with brokerage firms, mutual funds, portfolio managers and other capital market entities.

Aadhaar is already permitted as valid ID proof and address proof documents in the KYC (Know Your Customer) procedures for opening of bank accounts, insurance, telecom and many other services.

Besides, the regulator had said that Aadhaar can be used as 'Proof of Address for Know Your Client (KYC) norms' of SEBI.